Markets in the Gulf were mixed yesterday with Saudi Arabia’s bourse supported by the petrochemical sector while Egypt lost steam as local and regional funds exited positions.
Saudi Arabia’s index rose 0.4% in moderate trade as Brent prices firmed over $46 a barrel.
Saudi Basic Industries, the petrochemical heavyweight, climbed 0.9%.
The insurance sub-index, usually actively traded by day traders, added 1.7% as almost all the constituents advanced, recouping some of the heavy losses of the week.
BUPA Arabia, a mid-sized medical insurer, rose 2.9%. But banking shares were mixed, with the sub-index losing 0.2% as the sector’s heavyweights diverged.
Al Rajhi Bank, the largest listed Islamic lender, dropped 2.7%.
“There is an overhang from the construction sector on Saudi banks, but we believe that the capital buffers in top-tier banks are sufficient,” said Kunal Damle, institutional sales for brokerage at Bahrain’s Securities & Investment Company (SICO).
Samba Financial Group, which derived 11% of its net income from corporate banking in the first half of the year, jumped 4.9%.
The exchange will be closed today in observance of the kingdom’s national day holiday and will resume trade on Sunday September 25.
Dubai’s index failed to hold onto small gains from earlier in the day and dropped 0.3% as declines in blue chips weighed on the exchange. Emaar Properties retreated 1.3% and Dubai Investments lost 1.0%.
But Abu Dhabi’s index rose 0.2% although activity was lower than previous sessions this week.
Union National Bank, which has shed 6.7% since Sunday, added 1.0%.
Cairo’s main index retreated 1.4% in this week’s highest volume of trade as both local and regional funds cashed out, bourse data showed.
All 30 shares declined with real estate developer Amer Group Holding slumping 6.9% and Qalaa Holdings dropping 5.3%.
“Investors are hopeful, but are not holding their breath waiting for the IMF $12bn loan and the host of policy actions that should be taken to secure it,” said a Cairo based portfolio manager.
Elsewhere, Egypt index dropped 1.4% to 7,938 points; Bahrain index gained 0.2% to 1,134 points and Oman index declined 0.03% to 5,750 points yesterday.